Creating peace of mind through honest and committed management[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

November 1, 2011
For Immediate Release
REIT Issuer
Ichigo Real Estate Investment Corporation (8975)
1-1-1, Uchisaiwai-cho, Chiyoda-ku, Tokyo
Representative: Yoshihiko Takatsuka, Executive Director
Asset Management Company
Ichigo REIT Management Co., Ltd.
Representative: Wataru Orii, President & Representative Director
Contact: Masaya Hiruta, Senior Executive Managing Director
Tel: 03-3502-4891

Partial Change in Management Guidelines of Asset Management Company
Ichigo REIT Management Co., Ltd., the asset management company of Ichigo Real Estate
Investment Corporation (“Ichigo REIT”), has partially changed its Management Guidelines,
effective today. The details are as follows.

1． Major Changes and Reasons
As disclosed in today’s press release “Merger of FC Residential Investment Corporation and Ichigo Real
Estate Investment Corporation,” FC Residential Investment Corporation and Ichigo REIT have merged
effective today, and FC Residential Investment Corporation as the surviving corporation has changed its
name to Ichigo Real Estate Investment Corporation.
By diversifying its investment among office and residential properties which have differing asset
characteristics, the new Ichigo REIT will constitute a stable portfolio. The objective of the changes
in the Management Guidelines is to secure steady asset growth and stable income. Some wordingsin the Management Guidelines have also been unified and clarified.
2． Effective Date of Changes
November 1, 2011

This document is being distributed today to the Kabuto Club (the press club of the TSE) as well as to thepress club for the Ministry of Land, Infrastructure, Transport, and Tourism and the press club for
specialty construction newspapers at the Ministry of Land, Infrastructure, Transport, and Tourism.
Website of Ichigo REIT: www.ichigo-reit.co.jp/eng

Changes to the Management Guidelines of Ichigo REIT Management - Old versus New
Old
Section I. General Provisions

New
Section I. General Provisions

Article 1 (Establishment and application of theManagement Guidelines)
Ichigo REIT Management Co., Ltd. (hereafter, the“Company”) shall establish Management
Guidelines (hereafter, the “Guidelines”) based on
the Articles of Incorporation of Ichigo Real Estate
Investment Corporation (established on November
18, 2005 and including afterward revisions) and theInvestment Trust and Investment Corporation Law(1951 Law No. 198 and including afterward
revisions). The Guidelines shall be applied to asset
management operations the Company conducts
under the consignment of Ichigo Real Estate
Investment Corporation (hereafter, the “Investment
Corporation”) based on the asset management
consignment agreement (concluded on November
18, 2005 and including afterward revisions).

Article 1 (Establishment and application of theManagement Guidelines)
Ichigo REIT Management Co., Ltd. (hereafter, the“Company”) shall establish Management
Guidelines (hereafter, the “Guidelines”) based on
the Articles of Incorporation of Ichigo Real Estate
Investment Corporation (established on June 17,2005 and including afterward revisions) and theInvestment Trust and Investment Corporation Law(1951 Law No. 198 and including afterward
revisions). The Guidelines shall be applied to asset
management operations the Company conducts
under the consignment of Ichigo Real Estate
Investment Corporation (hereafter, the “Investment
Corporation”) based on the asset management
consignment agreement (concluded on November
18, 2005 and including afterward revisions). The
terms used in the Guidelines shall have the meaning
provided in the Articles of Incorporation unlessotherwise provided in the Guidelines or the context
requires otherwise.

(Descriptions omitted)(No change)

Article 3 (Changes to the Guidelines)
1. Establishment of and changes to the Guidelines
shall be decided by the Investment Management
Department preparing a draft in consultation
with relevant departments, which shall then be
subject to resolution of the Risk
Management/Compliance Committee andfollowed by resolution of the Company’s Boardof Directors.

Article 3 (Changes to the Guidelines)
1. Establishment of and changes to the Guidelines
shall be decided by the Asset
Investment Department preparing a draft inconsultation with relevant departments, whichshall then be subject to resolution of theInvestment Management Committee and Risk
Management/Compliance Committee andfollowed by resolution of the Company’s Boardof Directors.
2. As a rule, the Guidelines shall be reviewed oncea year with considerations given to market
trends, legal systems, general economic
situations, etc. In addition, the Company shallmake changes to the Guidelines as necessary
when major changes have occurred to theinvestment environment.
3. When changes have been made to the
Guidelines, the Company shall report thecontent of such changes to the Investment
Corporation’s Board of Directors without delay.
4. (No change)

2. As a rule, the Guidelines shall be reviewed oncea year with considerations given to market
trends, legal systems, general economic
situations, etc. In addition, the Guidelines shallbe changed as necessary when major changes
have occurred to the investment environment.
3. The Company shall report the content
of decided changes to the Investment
Corporation’s Board of Directors without delay.
4. (Descriptions omitted)
Article 4 (Other)
1. Unless otherwise provided, the mattersconcerning investment decisions provided for in

Article 4 (Other)(Deleted)the Guidelines in Section II and thereafter shall
similarly apply to also real estate, etc. otherthan real estate stipulated in the Statement of
Operational Procedures.
2. Transactions with interested parties shall behandled in accordance with the Rules, as well as
the separately-established Interested Party
Transaction Rules.
(Newly established)

1. Transactions with interested parties shall behandled in accordance with the Rules, as well as
the separately-established Interested Party
Transaction Rules.
2. The Company shall not have any involvementwith anti-social forces, as defined in the Basic
Rules on Elimination of Anti-Social Forces thatis separately provided by the Company, andshall respond in accordance with said Rules andthe separately-provided Manual for Dealing
with Anti-Social Forces.

Section II. Investment Policy, Etc.

Section II. Investment Policy, Etc.

Article 5 (Basic Policy)
1. The Company shall conduct asset managementwith an aim to secure steady growth of assets
under management and stable revenues andprofit from a medium- to long-term perspective
by investing primarily in real estate, etc.
2. The Company shall primarily invest in realestate and beneficiary rights in real estate
investment trust, etc. located in Japan inaccordance with the Statement of Operational
Procedures.
(Newly established)

Article 5 (Basic Policy)
1. The Company shall conduct asset managementwith an aim to secure steady growth of assets
under management and stable revenues andprofit from a medium- to long-term perspective.

Article 6 (Allocation Policies)
1. Investment shall be made in thefollowing major metropolitan areas and othermajor cities (prefectural capital cities and otherregional cities with a similar economic size) inJapan.
Tokyo, Kanagawa
1 TokyoMetropolitan Area Prefecture, Chiba
Prefecture and Saitama
Prefecture
2 Kansai Area
Osaka Prefecture, Kyoto
Prefecture and Hyogo
Prefecture
3 5 Major Cities
Nagoya City, Fukuoka
City, Sapporo City,
Sendai City andHiroshima City
4 Other Regional
Major cities in areas other
Citiesthan the above

2. The Company shall invest primarily in realestate and beneficiary rights in real estate
investment trust, etc. located in Japan inaccordance with the Articles of Incorporationand Statement of Operational Procedures.
3. When the Company is to invest in real estate
related assets other than real estate andbeneficiary rights in real estate investment trust,unless otherwise provided, the mattersconcerning investment decisions provided for inthis Section shall also apply to the concerned
real estate related assets.
Article 6 (Allocation Policies)
1. Investment shall be made in the following areas
located primarily in central Tokyo, but also in
the greater Tokyo metropolitan area and othermajor cities (ordinance-designated cities
and prefectural capital cities, etc.) in Japan.
1 Central Tokyo
Chiyoda, Minato,Chuo, Shinjuku,
Shibuya andShinagawa Wards
2 Tokyo Metropolitan Tokyo (excluding the
6 wards above),
Area
Kanagawa, Chiba, andSaitama Prefectures
3 4 Major Cities
Osaka, Nagoya,Fukuoka and Sapporo
4 Other Regional
Major cities in areas
Citiesother than the above(prefectural capitalcities and other regional
cities with a similar
economic size)
2. Investment shall be made in primarily officebuildings that are used mainly as offices(including educational facilities and medical
treatment facilities, etc.), as well as beneficiaryrights in real estate investment trust, etc.
pertaining to such real estate. However, in viewof making use of investment opportunities anddiversified investment, investment shall bemade in also certain other urban buildings thatare used mainly as commercial and retail outlets
for selling merchandise or providing
food/drinks and services, etc., as well as
beneficiary rights in real estate investment trust,etc. pertaining to such real estate.
3. Investment shall be made centering on
properties located in the Tokyo Metropolitan
Area. However, since there are areas other than
the Tokyo Metropolitan Area where steady andstrong demand can be expected, and in order torealize geographical diversification of theportfolio and reduce natural disaster risks,
investment shall be made in competitive
properties located in the Kansai Area, 5 Major
Cities and Other Regional Cities while taking
into consideration the market size and risks andreturns.
4. In building the portfolio, the Company shallfocus on potential capacities of individual assets
under management and classify them into TypeA and Type B categories in accordance with
their room for improved profitability, andmanage them in an effort to maximize investor
profit and secure stable revenues and profit.
Specifically, Type A represents assets undermanagement that have executed theirprofitability to a certain degree but have room
to produce further profit, while Type B
represents properties that have fully executed
their potential capacities through renewal
constructions or other measures. The Company
will flexibly and dynamically sell properties
centering on those in the Type B category inorder to acquire opportunities for gains throughrealizing the results of internal growth.
The Company will periodically consider thenecessity of reviewing the classification of theassets under management, and may shift theclassification between Type A and Type B forindividual properties as it judges it appropriate
in consideration of the status of their renewal
constructions, changes in economic
environments, the real estate market conditions
and other factors.

2. Investment shall be made in primarily realestate that are used mainly as offices (including
educational facilities and medical treatment
facilities, etc.), residential facilities, commercial
and retail facilities or hotel accommodation, as
well as beneficiary rights in real estate
investment trust, etc. pertaining to such realestate. However, in view of making use ofinvestment opportunities and diversified
investment, investment may be made in also
certain real estate of other uses, as well as
beneficiary rights in real estate investment trust,etc. pertaining to such real estate.
3. Investment shall be made centering on
properties located in Central Tokyo and Tokyo
Metropolitan Area. When there are deemed to
be areas other than these areas where steady andstrong demand can be expected, in an aim torealize geographical diversification of theportfolio and reduce natural disaster risks,
investment shall be made in competitive
properties located in the 4 Major Cities andOther Regional Cities while taking into
consideration the market size and risks andreturns.
(Deleted)5. The target investment ratios by region or asset
type shall be in line with the descriptions in the
Attachments “1. Geographical Classification of
Investment Real Estate” and “2. Asset TypeClassification of Investment Real Estate.”

4. The target investment ratios by region or asset
type shall be as provided in the Attachments “1.
Geographical Classification of Investment Real
Estate” and “2. Asset Type Classification of
Investment Real Estate.”

Article 7 (Acquisition Policies)
1. In acquiring investment properties, economic,
physical and legal investigations shall be fully
conducted based on the investigation items
described in the Attachment “3. Examination
Items for Acquiring Investment Properties” inorder to examine the appropriateness of theproperties as investment objects centering on
grasping the existence or nonexistence offactors that hinder the stability and growth ofcash flows, etc.
2. In acquiring investment properties, detailed
examinations shall be made as a rule based on
the results of building status evaluations,
earthquake resistance investigations,environmental investigations, real estateappraisals and market investigations, theinvestigations of which shall be outsourced toindependent external providers with no vested
interest, in order to ensure professionalism,
objectivity and transparency.
3. In acquiring investment properties, decisions
shall be made as a rule after considering thestandards of the “basic specifications” describedin the Attachment “4. Basic Specifications ofInvestment Real Estate.” However, evenproperties that do not satisfy all of the “basic
specifications” could be acquired throughcomprehensive judgment after considering theircompetitiveness, profitability and other factors.

Article 7 (Acquisition Policies)
1. In acquiring investment properties, economic,
physical and legal investigations shall be fully
conducted based on the investigation items
described in the Attachment “3. Examination
Items for Acquiring Investment Properties” inorder to examine the appropriateness of theproperties as investment objects centering on
grasping the existence or nonexistence offactors that hinder the stability as well as
growth of cash flows, etc.
2. In acquiring investment properties, detailed
examinations shall be made as a rule based on
the results of building status evaluations,
earthquake resistance investigations,environmental investigations, real estateappraisals and, if necessary, market
investigations, which shall be outsourced toindependent external providers with no vested
interest, in order to ensure professionalism,
objectivity and transparency.
3. In acquiring investment properties, investment
decisions shall be made as a rule after
considering the standards of the “basic
specifications” as provided in the Attachment“4. Basic Specifications of Investment Real
Estate.” However, even properties that do notsatisfy all of the “basic specifications” could beacquired through comprehensive judgment after
considering their competitiveness, profitability
and other factors.
4. In examining investment properties,
investment decisions shall be made by taking
note of the matters provided below.

4. In examining investment properties, investment
shall be made as a rule in properties of 500
million yen, which is the minimum investment
amount, or larger size by taking note of
the following points. However, investment in 1
property shall be so that the investment amountof the property accounts for no more than 25%of the total amount of the portfolio after
acquisition of the property.
① (Descriptions omitted)② (Descriptions omitted)③ (Descriptions omitted)④ (Descriptions omitted)(Newly established)① (No change)② (No change)③ (No change)④ (No change)
5. When investment is to be made in real estateand beneficiary rights in real estate investment
trust, as a rule, the minimum investment amountshall be 500 million yen. When investment is to
be made in real-estate-backed securities, as arule, the minimum investment amount shall be5. (Descriptions omitted)
6. (Descriptions omitted)
Article 8 (Leasing Policies)
1. In pursuit of securing stable revenues andprofit, leasing policies shall be formed andaction taken to seek tenants for each investment
real estate by collecting information on each
investment real estate and analyzing the
supply-demand status, market rent, vacancy
rates, trends of competitive properties, etc. forthe real estate market in the area in which therespective investment real estate is located.
2. When judged to be reasonable in efficiently
operating and managing investment real estate,use of master lease companies (lease companies
concluding lease agreements for the purpose ofsubleasing to end-tenants = lease companies
concluding master lease agreements; there is arent-guarantee-type and a pass-through-type
with no rent guarantee) shall also be examined.
In selecting master lease companies, decisions
shall be made through comprehensive judgmentof the characteristics, track record, etc. of
potential master lease companies after
considering the characteristics of the investment
real estate and the area’s real estate market.
3. (Descriptions omitted)(1) A check concerning the items given in thefollowing table shall be conducted onprospective tenants. Databases of external
investigation agencies, etc. shall also be
utilized as necessary. When the credit check,etc. concludes no problems, whether or not toconclude a lease agreement shall be judged
through a comprehensive examination of therent level, lease contract period, security
deposit amount, tenant’s business category,balance with other tenants in the property,
size and format of the demanded space, etc.
Check Items (Content)
1. Business category, business history,financial performance content (financial
soundness)
2. Leasing content (lease purpose, contract
form, contract period, rent, security
deposit, leased floor space, content ofinterior finishing work, etc.)
3. With/without guarantor and attributes ofguarantor, if any

100 million yen. However, the investment
amount in one property shall account for no
more than 25% of the total amount of theportfolio after acquisition of the property.
6. (No change)
7. (No change)
Article 8 (Leasing Policies)
1. In pursuit of securing stable revenues andprofit, leasing policies shall be formed andaction taken to seek tenants for each investment
real estate by collecting information on each
investment real estate and analyzing the
supply-demand status, market rent, vacancy
rates and trends of competitive properties, etc.
for the real estate market in the area in which
the respective investment real estate is located.
2. When judged to be reasonable in efficiently
operating and managing investment real estate,use of master lease companies (lease companies
concluding lease agreements for the purpose ofsubleasing to end-tenants (so-called master
lease agreements); there is a rent-guarantee-type
and a pass-through-type with no rent guarantee)
shall also be examined. In selecting master
lease companies, decisions shall be madethrough comprehensive judgment of thecharacteristics, track record, etc. of potential
master lease companies after considering thecharacteristics of the investment real estate andthe area’s real estate market.
3. (No change)(1) A check of each of the screening items listed
in the following table shall be conducted onprospective tenants. Databases of external
investigation agencies, etc. shall also be
utilized as necessary. When the credit check,etc. concludes no problems, whether or not toconclude a lease agreement shall be judged
through a comprehensive examination of therent level, lease contract period, security
deposit amount, tenant’s business category,balance with other tenants in the property,
size and format of the demanded space, etc.
Classification Screening Items
1. Business category, businesshistory, financial
performance content(financial soundness)
2. Leasing content (useCorporation
purpose, contract form,
contract period, rent,
security deposit, leased floor
space, content of interior
finishing work, etc.)
3. With/without guarantor andIndividual

attributes of guarantor, if any
1. Place of employment andwork content, tenure, etc.
2. Annual income (total
amount of rent as apercentage of annual
income, etc.)
3. Leasing content (usepurpose, contract form,
contract period, rent,
security deposit, number ofprospective residents, etc.)
4. With/witout guarantor andattributes of guarantor, if any(relationship with the person
in question, etc.)
5. Age, gender, etc.

(2) (Descriptions omitted)
4. (Descriptions omitted)(1) (Descriptions omitted)(2) Security deposits
Security deposits shall be decided at the levelthat is appropriate in each case in light of thelease contract period, property characteristics,
real estate rental market status, tenant’s
creditworthiness, lease purpose, etc.
(3) (Descriptions omitted)(2) (No change)
4. (No change)(1) (No change)(2) Security deposits
Security deposits shall be decided at the levelthat is appropriate in each case in light of thelease contract period, property characteristics,
real estate rental market status, tenant’s
creditworthiness and lease purpose, etc.
(3) (No change)

Article 9 (Property Management Policies)
1. (Descriptions omitted)
2. In selecting property management companies,
the property management company that isjudged to be the best through a comprehensive
examination of the screening items given in thefollowing table shall be decided as a rule foreach individual investment real estate.
Screening Items
Screening Content
1. Business
Property managementbusiness outline, personnel
structure, geographic
business coverage, etc.
2. Experience
Property management track
and track
record by real estate use orrecordgeographic area, and realestate use or geographic areaof expertise
3. Financial
Past financial performancesoundness
content, and creditworthiness4. Property
Structure, quality and speed
managementof operating and managing
content andbuildings (equipment
capacity
maintenance, cleaning,
security, etc.), managing
construction, building andrepairs (management of

Article 9 (Property Management Policies)
1. (No change)
2. In selecting property management companies,
the property management company that isjudged to be the best through a comprehensive
examination of the screening items listed in thefollowing table shall be decided as a rule foreach individual investment real estate.
Screening Items
Screening Content
1. Business
Property managementbusiness outline, personnel
structure, geographic
business coverage, etc.
2. Experience
Property management track
and track
record by real estate use orrecordgeographic area, and realestate use or geographic areaof expertise
3. Financial
Past financial performancesoundness
content, and creditworthiness4. Property
Structure, quality and speed
managementof operating and managing
content andbuildings (equipment
capacity
maintenance, cleaning,
security, etc.), managing
construction, building andrepairs (management ofbuilding fixing, repairs andmaintenance, renewal andrenovation work, etc.) andmanaging leasing operations(tenant leasing, etc.), as wellas accompanying reportingtasks, property management
planning, external relations
tasks, etc.
Appropriateness for property
management service
Status of consignment for
nearby competitive buildings

building fixing, repairs andmaintenance, renewal andrenovation work, etc.) andmanaging leasing operations(tenant leasing, etc.), as wellas accompanying reportingtasks, property management
planning, external relations
tasks, etc.
5. Fee amount
Appropriateness against
property management
content
6. Other
Status of consignment for
nearby competitive buildings
3. A smooth property management structure shallbe constructed by seeking mutually close ties
with property management companies. A
unified property management services manual
shall be prepared and measures taken to ensure
it is distributed to and followed by each
property management company in order tomaintain and improve the quality of property
management services. Property managementcompanies shall regularly report on the status ofoperating and managing investment real estate(status of leasing income and expenditures,status of occupancy, trends of existing tenants,
status of seeking new tenants, actual and future
repairs and maintenance work, etc.) andconsulted with respect to such response andcontent, etc. as needed.
The contract period with property managementcompanies shall as a rule be for 1 year.
Performance evaluations shall as a rule beconducted every year on the management
performance for that contract period based on
the content of daily monitoring and regular
reports on the status of operating and managing
properties, etc. Changing the property
management company shall be examined in theevent of poor performance evaluation results.

4. The contract period with property managementcompanies shall as a rule be for 1 year.
Performance evaluations shall as a rule beconducted every year on the management
performance for that contract period based on
the content of daily monitoring and regular
reports on the status of operating and managing
properties, etc. Changing the property
management company shall be examined in theevent of poor evaluation.

Article10

Article10(Basic Policy on Repairs andMaintenance and Capital
Expenditures)
1. (Descriptions omitted)
2. Efforts shall be made to efficiently conduct
repairs and maintenance for the purpose ofmaintaining and conserving the functions ofbuildings and equipment by examining theimplementation period, implementation content,
implementation amount, etc. in light of past
repairs and maintenance history, equipmentlevel, building engineering report content, etc.
3. In addition to usually required capital

5. Fee amount
6. Other

3. A smooth property management structure shallbe constructed by seeking mutually close ties
with property management companies in aneffort to maintain and improve the quality ofproperty management services. In addition,
property management companies shall regularly
report on the status of operating and managing
investment real estate (status of leasing income
and expenditures, occupancy, trends of existing
tenants, status of seeking new tenants, actualand future repairs and maintenance work, etc.)
and consulted with respect to such response andcontent, etc. as needed.

(Basic Policy on Repairs andMaintenance and Capital
Expenditures)
1. (No change)
2. Efforts shall be made to efficiently conduct
repairs and maintenance for the purpose ofmaintaining and conserving the functions ofbuildings and equipment by examining theimplementation period, implementation content
and implementation amount, etc. in light of past
repairs and maintenance history, equipmentlevel and building engineering report content,etc.
3. In addition to usually required capitalexpenditures (renewal of various equipment asways to cope with aging and for the purpose ofmaintaining functions of buildings), renewals
for maintaining and improving the investment
real estate’s market competitiveness and tenantsatisfaction over the medium and long term
(installment of raised flooring, introduction ofindividual air-conditioning equipment,
installment of 24-hour security systems,
improvement of the appearance of external
walls, common areas, etc. and enhancement of
convenience, etc.) shall also be implemented byconducting sufficient examinations as needed.
In implementing work, efforts shall be made forits efficient implementation by examining theimplementation period, implementation content,
implementation amount, etc.
4. In implementing the repairs and maintenancework above, when implementation of work ofcontent that are in common among several
properties is judged to lead to lower expenses
for the portfolio on the whole, simultaneous
implementation of such work shall also be
examined.
In addition, attention shall be paid to balancing
of repairs and maintenance expenses andreserves (depreciation) and leveling of repairs
and maintenance expenses for the portfolio on
the whole in each operating term in order toensure stability of income and expenditures forthe portfolio on the whole.
(Newly established)

expenditures (refers to renewal of various
equipment as ways to cope with aging and forthe purpose of maintaining functions ofbuildings), renewals for maintaining andimproving the investment real estate’s market
competitiveness and tenant satisfaction over the
medium and long term (refers to installment ofraised flooring, introduction of individual
air-conditioning equipment, installment of
24-hour security systems, improvement of theappearance of external walls, common areas,
etc. and enhancement of convenience, etc.) shallalso be implemented by conducting sufficientexaminations as needed. In implementing work,
efforts shall be made for its efficient
implementation by examining the period,
content, amount, etc.
4. In implementing the repairs and maintenancework provided in this Article, when
implementation of work of content that are incommon among several properties is deemed tolead to lower expenses for the portfolio on thewhole, simultaneous implementation of suchwork shall also be examined. In addition,
attention shall be paid to balancing of repairs
and maintenance expenses and reserves(depreciation) and leveling of repairs andmaintenance expenses for the portfolio on thewhole in each operating term in order to ensurestability of income and expenditures for the
portfolio on the whole.
5. Reinforcement work shall be implemented forproperties that require seismic strengthening
due to failure to meet the earthquake resistance
performance as provided in the Attachment “4.
Basic Specifications of Investment Real Estate”
after implementation period and otherexaminations while considering the status oftenants’ operations.

(Descriptions omitted)(No change)

Article(Policies on Review of the Portfolio
12
and Disposition of Properties)
1. The Company may review the composition of
the portfolio and dispose individual investment
real estate in accordance with the criteria set in
the next subparagraphs. Concerning reviews of
the composition of the portfolio and dispositionof individual investment real estate, theCompany shall decide whether or not a property
is disposed after analyzing the trends in theJapanese and global economy and the real estatemarket, studying whether the portfolio’s asset
composition after the disposition can securestable revenues and profit from a medium- to

Article(Policies on Review of the Portfolio
12
and Disposition of Properties)
1. The Company may review the composition of
the portfolio and dispose individual investment
real estate in accordance with the criteria set in
the next subparagraphs. Concerning reviews of
the composition of the portfolio and dispositionof individual investment real estate, theCompany shall decide whether or not a property
is disposed after analyzing the trends in theJapanese and global economy and the real estatemarket, studying whether the portfolio’s asset
composition after the disposition can securestable revenues and profit from a medium- tolong-term perspective, and further considering
present revenue status and future revenue
forecasts of the individual investment realestate. The Company shall work to stabilize the
distributions delivered by the Investment
Corporation to its unitholders for each operatingterm by utilizing gains from selling individual
properties as well as profit from lease
operations.
2. (Descriptions omitted)(1) When the disposition is judged as appropriate
in light of the Investment Corporation’s
medium- to long-term management strategy
as a result of conducting analysis of revenues
and profit of individual properties, etc.,
allocation analysis of the portfolio andanalysis on the status of property acquisitions,etc.
(2) (Descriptions omitted)(3) (Descriptions omitted)(4) (Descriptions omitted)(5) When a Type B property is judged to becontributing more to the Investment
Corporation’s revenues and profit if it is soldat an appropriate market timing in pursuit ofrealizing unrealized profit.
3. (Descriptions omitted)
Article(Financial Policy)
13
1. (Descriptions omitted)(1) The Company shall raise funds from balanced
sources to secure funds to acquire assets,make repairs and capital investments, pay
dividends, manage the Investment
Corporation, and repay debts (including
payments of tenant leasehold and security
deposits, repayment of loans and redemptionof investment corporation bonds), etc.
(2) (Descriptions omitted)
2. (Descriptions omitted)
3. (Descriptions omitted)(1) (Descriptions omitted)(2) The borrowing of funds from financial
institutions, etc. shall be based on thefollowing policy:• The Company shall maintain a balance
between short-term and long-termborrowings and fixed and floating interest
rates, etc. to reduce the interest rate risk
while endeavoring to limit overall funding
costs. The Company shall also diversify
repayment dates and lenders to reducerefinancing risk.
• When selecting a lender, the Company shalllong-term perspective, and further considering
present revenue status and future revenue
forecasts of the individual investment realestate.

2. (No change)(1) When the disposition is judged as appropriate
in light of the Investment Corporation’s
medium- to long-term management strategy
as a result of analysis of revenues and profit
of individual properties, etc., allocation
analysis of the portfolio as well as analysis on
the status of property acquisitions, etc.
(2) (No change)(3) (No change)(4) (No change)(Deleted)

3. (No change)
Article(Financial Policy)
13
1. (No change)(1) The Company shall raise funds from balanced
sources to secure funds to acquire assets,make repairs and capital investments, pay
dividends and manage the Investment
Corporation, or repay debts (including
payments of tenant leasehold and security
deposits, repayment of loans and redemptionof investment corporation bonds), etc.
(2) (No change)
2. (No change)
3. (No change)(1) (No change)(2) The borrowing of funds from financial
institutions, etc. shall be based on thefollowing policy:① The Company shall maintain a balance
between short-term and long-termborrowings and fixed and floating interest
rates, etc. to reduce the of interest rate risk
while endeavoring to limit overall funding
costs. The Company shall also diversify
repayment dates and lenders to reducerefinancing risk.
② When selecting a lender, the Company shallnegotiate with multiple potential lenders
terms and conditions such as the borrowing
period, interest rate, collateralization
requirement, and fees, taking into
consideration the financial market situation,and make a decision based on the overall
merits. Lenders shall be limited to qualified
institutional investors as stipulated in Article
2-3-1 of the Securities and Exchange Law.

•

The Company shall consider credit line
agreements, etc. as necessary to enable theflexibly procure required funds.
(3) (Descriptions omitted)(4) (Descriptions omitted)(5) The Company may invest in rights pertaining
to financial futures transactions, etc. andrights pertaining to financial derivativetransactions (refers to those provided in eachof Article14-13 and Article 14-14 of the Orderfor Enforcement of the Investment Trust andInvestment Corporation Law (2000 Cabinet
Order No. 480 and including afterward
revisions) (hereafter, the “Investment Trust
Law Enforcement Order”)) only for the
purpose of hedging interest rate risks arisingfrom the liabilities of the Investment
Corporation and other risks. However, if theliabilities underlying the hedging of risks
terminate because of repayment or otherreasons, the Company may elect not to cancel
the hedging transaction in consideration of
the avoid cancellation fees.
4. (Descriptions omitted)(1) The Company shall maintain an appropriate
level of cash and deposits as surplus funds in
preparation for expenditures necessary for the
management, etc. of the Investment
Corporation, while also paying attention tofunding ratio. With emphasis on the security
and liquidity of funds, the surplus funds of theInvestment Corporation will be kept ininterest-free accounts (settlement accounts
that are fully protected by deposit insurance)or in accounts of banks with the highest or
second-highest grade in short-term debt
ratings.
The Articles of Incorporation allow
investment in short-term investment securities
and monetary claims with emphasis on
security and negotiability. For the time being,negotiate with multiple potential lenders
terms and conditions such as the borrowing
period, interest rate, collateralization
requirement and fees, taking into
consideration the financial market situation,and make a decision based on the overall
merits. Lenders shall be limited to qualified
institutional investors as defined in Article
2-3-1 of the Financial Instruments andExchange Law (but limited to institutional
investors as provided in Article 67-15-1 of
the Special Taxation Measures Law (1957
Law No. 26 and including afterward
revisions).
③ The Company shall consider credit line
agreements, etc. as necessary to flexibly
procure required funds.
(3) (No change)(4) (No change)(5) The Company may invest in rights pertaining
to financial futures transactions, etc. andrights pertaining to financial derivativetransactions (refers to those provided in eachof Article14-13 and Article 14-14 of the Orderfor Enforcement of the Investment Trust andInvestment Corporation Law (2000 Cabinet
Order No. 480 and including afterward
revisions) (hereafter, the “Investment Trust
Law Enforcement Order”)) only for the
purpose of hedging currency risks, interest
rate risks and other risks arising from theliabilities of the Investment Corporation.
However, if the liabilities underlying thehedging of risks terminate because of
repayment or other reasons, the Company
may elect not to cancel the hedging
transaction in consideration of thecancellation fees.
4. (No change)(1) The Company shall maintain an appropriate
level of cash and deposits as surplus funds in
preparation for expenditures necessary for the
management, etc. of the Investment
Corporation, while also paying attention tofunding ratio. With emphasis on the security
and liquidity of funds, the surplus funds of theInvestment Corporation will be kept ininterest-free accounts (settlement accounts
that are fully protected by deposit insurance)or in accounts of banks with the highest or
second-highest grade in short-term debt
ratings. The Articles of Incorporation allow
investment in short-term investment securities
and monetary claims with emphasis on
security and negotiability. For the time being,
however, the Company will refrain from

however, the Company will refrain frominvesting in short-term investment securities
and monetary claims for management
purposes.
(2) (Descriptions omitted)

investing in short-term investment securities
and monetary claims for management
purposes.
(2) (No change)

Article(Information Disclosure Policies)
14
Efforts shall be made to provide investors withinformation that is easy to understand and in aquick, accurate and fair manner, in line with thecontents and formats required respectively by theInvestment Trust Law, Financial Instruments andExchange Law, the Tokyo Stock Exchange and The
Investment Trusts Association, Japan, etc. Details
shall be in line with the regulations on timely
disclosure that are established separately.

Article(Information Disclosure Policies)
14
Information shall be disclosed in a quick, accurate
and fair manner, in line with the contents andformats required respectively by the Investment
Trust Law, Financial Instruments and Exchange
Law, the Tokyo Stock Exchange and The
Investment Trusts Association, Japan, etc. In
addition, efforts shall be made to provide
information that is easy to understand for investors.
Details shall be in line with the regulations ontimely disclosure that the Company has separately
provided.

Article(Dividend Policies)
15(Descriptions omitted)(1) Distribution of profit (Article 34-1 of the
Articles of Incorporation)(a The amount of profit of the Investment) Corporation (hereafter, the “distributableamount”) shall be calculated in accordancewith generally accepted corporate
accounting practices in Japan.

Article(Dividend Policies)
15(No change)(1) Distribution of profit (Article 37-1 of the
Articles of Incorporation)① Of the total amount of dividends tounitholders, the amount of profit of theInvestment Corporation (hereafter, the“distributable amount”) shall be calculated
in accordance with generally accepted
corporate accounting practices.
② As a rule, the dividend amount shall exceed
the amount equivalent to 90% of theInvestment Corporation’s amount of
earnings available for dividend designatedin Article 67-15-1 of the Special Taxation
Measures Law (1957 Law No. 26 andincluding afterward revisions) (hereafter, the“special provisions for taxation on
investment corporations”) (hereafter, the“amount of earnings available fordividend”) (or if the method for calculatingthat amount changes due to revision or
modification of applicable laws orordinances, the amount calculated by themethod after the revision). Notwithstanding
the above, the dividend amount shall be an
amount reasonably decided upon by theInvestment Corporation if it records a tax
deficit or there is no taxable income due tocarry-over of losses. The Investment
Corporation may use the distributableamount to accumulate a long-term repair
reserve, payment reserve, dividend reserve
and any other similar reserve and allowance
considered necessary for the maintenance or(b As a rule, the dividend amount shall be) determined by the Investment Corporation
so that it shall exceed the amount equivalent
to 90% of the amount of the Investment
Corporation’s distributable income
designated in Article 67-15-1 of the Special
Taxation Measures Law (1957 Law No. 26
and including afterward revisions)(hereafter, the “distributable income”).
The Investment Corporation may use the
distributable amount to accumulate along-term repair reserve, payment reserve,
dividend reserve and any other similar
reserve and allowance considered necessary
for the maintenance or improvement of theassets under management.

(2) Distribution of monies in excess of profit
When the distributable amount is smaller than
the amount equivalent to 90% of the amountof the distributable income, or when theInvestment Corporation judges it appropriate,
the Investment Corporation shall be able todetermine and distribute the amount asmonies in excess of profit, to the limit of theamount designated in the rules of The
Investment Trusts Association, Japan(hereafter, the “Investment Trusts
Association”). However, when the
distribution amount of monies does notsatisfy the requirements in the exceptional
regulations concerning taxation on investment
corporations, the Investment Corporation
shall be able to distribute monies in theamount it determines with an aim to satisfy
the requirements (Article 34-2 of the Articles
of Incorporation).
The Investment Corporation places emphasison consistent payment of dividends; provided,
however, that concerning distribution ofmonies in excess of profit, distribution ofmonies in excess of profit shall not be madeto unitholders if individual unitholders
receiving such dividend need to conduct theirown calculation of gain/loss on transfer intaxation for each case of such distribution.
However, distribution of monies in excess of
profit may be made in accordance with thedividend policies above when the Board of
Directors of the Investment Corporation
judges that distribution of monies in excess of
profit is necessary in cases such as for the
purpose of the Investment Corporation
satisfying the requirements of the special
provisions for taxation on investment
corporations.
(3) Method of payment of dividends (Article34-3 of the Articles of Incorporation)
Dividends shall be paid in monies, and shallbe delivered within three months from the endof the fiscal period as a rule to unitholders or
registered investment unit pledgees entered orrecorded in the final unitholders register(including the register of beneficial
unitholders) as of the end of the fiscal period,in proportion to the number of investment
units held by the unitholders.

(4) Limitation period for right to claim dividends(Article 34-4 of the Articles of Incorporation)
If distributions of monies remain unreceived

improvement of the assets undermanagement.
(2) Distribution of monies in excess of profit(Article 37-2 of the Articles of Incorporation)
When the distributable amount is no morethan the amount equivalent to 90% of theamount of earnings available for dividend, orwhen the Investment Corporation judges it
appropriate, the Investment Corporation shallbe able to determine and distribute theamount as monies in excess of profit, to thelimit of the amount designated in the rules of
The Investment Trusts Association, Japan(hereafter, the “Investment Trusts
Association”). However, in this case, when
the distribution amount of monies still does
not satisfy the requirements in the special
provisions for taxation on investment
corporations, the Investment Corporation
shall be able to distribute monies in theamount it determines with an aim to satisfy
the requirements.

(3) Method of payment of dividends (Article37-3 of the Articles of Incorporation)
Dividends made under this Article shall be
paid in monies, and shall be delivered within
three months from the end of the fiscal period
as a rule to unitholders or registeredinvestment unit pledgees entered or recordedin the final unitholders register as of the endof the fiscal period, in proportion to thenumber of investment units held by theunitholders or the number of investment units
subject to the pledges that are held by theregistered investment unit pledgees.
(4) Limitation period for right to claim dividends(Article 37-4 of the Articles of Incorporation)
If distributions of monies made under thisafter the lapse of three full years after the dateon which they became due, the Investment
Corporation will be released from its
obligation to pay those distributions. Interest
shall not accrue on distributions payable.
(5) Rules of the Investment Trusts Association(Article 34-5 of the Articles of Incorporation)
Besides the above (1) through (4), theInvestment Corporation shall deliver
distribution of monies following the rules,
etc. designated by the Investment Trusts
Association.

Article remain unreceived after the lapse of
three full years after the date on which they
became due, the Investment Corporation will
be released from its obligation to pay those
distributions. Interest shall not accrue on
distributions payable.
(5) Rules of the Investment Trusts Association(Article 37-5 of the Articles of Incorporation)
Besides the preceding items, the Investment
Corporation shall deliver distribution ofmonies following the rules, etc. designated by
the Investment Trusts Association.

Attachments

Attachments[1 Geographical Classification of Investment. Real Estate]
Geographical
Location
Percentage
Classification
Tokyo
Tokyo, Kanagawa,Metropolitan Chiba, and Saitama
60~80%
Area
Prefectures
Kansai Area,
Other
5 Major Cities and20~40%
Other Major Cities
Total (%)
100%

[1 Geographical Classification of Investment. Real Estate]
Geographical
Percentag
Location
ClassificationeTokyo
Tokyo, Kanagawa,Over
Metropolitan Chiba, and Saitama
70%
Area
Prefectures
Under
4 Major Cities and
Other
Other Regional Cities 30%
Total (%)
100%

(Note Investment ratio is the total amount of acquisition prices)
for the respective classification divided by the total
amount of acquisition prices for all classifications.

(Note Investment ratio is the total amount of acquisition prices)
for the respective classification divided by the total
amount of acquisition prices for all classifications.

[2 Asset Type Classification of Investment Real. Estate]
Asset Type
Investment Ratio
ffice buildings% or more
Other urban buildings% or lessTotal (%)
100%

[2 Asset Type Classification of Investment Real. Estate]
Asset Type
Investment Ratio
OfficeOver 60%
Other (residential, retail
Under 40%
facilities, hotels, etc.)
Total (%)
100%

(Note Investment ratio is the total amount of acquisition prices)
for the respective classification divided by the total
amount of acquisition prices for all classifications.

(Note Investment ratio is the total amount of acquisition prices)
for the respective classification divided by the total
amount of acquisition prices for all classifications.

[3 Examination Items for Acquiring Investment. Properties][3 Examination Items for Acquiring Investment. Properties]

Investigation
Item

Investigation
Item

Economicinvestigation

Investigation Content
①
②
③
④
⑤
⑥
⑦

(Descriptions omitted)(Descriptions omitted)(Descriptions omitted)(Descriptions omitted)(Descriptions omitted)(Descriptions omitted)
Convenience in terms of train andother major means oftransportation

Economicinvestigation

Investigation Content
①
②
③
④
⑤
⑥
⑦

(No change)(No change)(No change)(No change)(No change)(No change)
Convenience in terms of train andother major means oftransportation or public and otherconvenient facilities

Physical
investigation⑧ (Descriptions omitted)⑨ (Descriptions omitted)⑩ (Descriptions omitted)⑪ (Descriptions omitted)① (Descriptions omitted)② (Descriptions omitted)③ Leasable floor space, shape ofleased units (whether or not it
supports partitioning), ceilingheight, electrical capacitance,
air-conditioning system, floor load,raised flooring, disaster prevention
equipment, security method,common area (elevator hall,
restroom, kitchen, common
hallway, etc.), parking lot, elevatorand other status④ (Descriptions omitted)⑤ (Descriptions omitted)⑥ Verification of long-term repair
plans
⑦
⑧
①
②
③
④

(Descriptions omitted)(Descriptions omitted)(Descriptions omitted)(Descriptions omitted)(Descriptions omitted)
In the case of buildings under
sectional ownership(a) (Descriptions omitted)(b) (Descriptions omitted)(Newly established)⑤

In the case of co-ownershipinterests(a) (Descriptions omitted)(b) Presence/Absence of special
provisions, agreements,
claims or obligations, etc.
among co-owners

⑧
⑨
⑩
⑪
①
②
③

(No change)(No change)(No change)(No change)(No change)(No change)
Leasable floor space, shape ofleased units, floor layout, ceilingheight, electrical capacitance,
air-conditioning system, floor load,raised flooring, disaster prevention
equipment, security method,common area (elevator hall,
restroom, kitchen, common
hallway, etc.), parking lot, elevatorand other status④⑤⑥(No change)(No change)
Verification of need for emergency
repairs and long-term repair plans(No change)(No change)(No change)(No change)(No change)
In the case of buildings under
sectional ownership(a) (No change)(b) (No change)(c) Attributes of other sectional
ownersIn the case of co-ownershipinterests(a) (No change)(b) Attributes of co-owners, andpresence/absence of special
provisions, agreements,
claims or obligations, etc.
among co-owners(c) (No change)
In the case of leasehold rights inland(a) (No change)(b) (No change)(c) Attributes of parties that
established leasehold rights
in land, andpresence/absence of special
provisions, etc.
(No change)(No change)(No change)
Content of trust agreement for
beneficiary rights in real estate
investment trust

Physicalinvestigation

⑦
⑧
①
②
③
④

⑤

Legal
investigation
⑥

⑦
⑧
⑨

Legal
investigation(c) (Descriptions omitted)
In the case of leasehold rights inland(a) (Descriptions omitted)(b) (Descriptions omitted)(Newly established)⑥(Descriptions omitted)(Descriptions omitted)(Descriptions omitted)(Newly established)

⑦
⑧
⑨
⑩

[4 Basic Specifications of Investment Real. Estate][4 Basic Specifications of Investment Real. Estate]

Item

Item

Location
Building age

Standard
Within 10-minute walk from nearest
stationFrontal road width of at least 10m(Descriptions omitted)

LocationStandard
Investment decisions shall be madebased on a comprehensive analysis
and examination of asset type, area,
size and other characteristics

Floor space
Ceiling heightAir-conditioning
systemFlooring

Security method
Legal compliance
Earthquake
resistance
performance
Earthquake PML(probablemaximum loss)
Standard forasbestos, PCB andother harmful
substances
Soil
contamination

Leasable floor space of at least
1,000m2
Typical floor space of at least 150m2
At least 2.5m
Individual air-conditioning, or able
to support such in the future
Supports raised flooring, or able tosupport such in the future
Floor load of at least 300kg/m2
Supports 24-hour mechanicalsecurity, or able to support such in
the future(Descriptions omitted)(Descriptions omitted)

Building age
Floor, space,specification,
facilities
Legal compliance
Earthquake
resistance
performance
Earthquake PML(probablemaximum loss)
Standard forasbestos, PCB andother harmful
substances(Descriptions omitted)
Asbestos(Descriptions omitted)

PCB(Descriptions omitted)

Other(Descriptions omitted)(Descriptions omitted)

Soil
contamination(No change)
Investment decisions shall be madebased on a comprehensive analysis
and examination of asset type, area,
size and other characteristics(No change)(No change)(No change)
Asbestos(No change)

PCB(No change)

Other(No change)(No change)